- Cooper Energy (COE) has incurred an underlying net loss of $17.4 million in its half-yearly report, marking a 770 per cent increase on the prior corresponding period
- The company attributed the movement to a volatile oil market, higher costs of sales and a write off of unsuccessful wells in the Cooper Basin
- Most notably, the change included an $18.5 million cost associated with a transition agreement and commencement of production with APA (APA)
- However, the company affirms the cost is set to deliver a step-change in production, revenue and cash flow
- Cooper Energy Managing Director David Maxwell said it had been a challenging but encouraging start to 2021
- Cooper Energy shares closed the session off 1.61 per cent, trading at 30.5 cents each
Cooper Energy (COE) has incurred an underlying net loss of $17.4 million in its half-yearly report, marking a 770 per cent increase on the prior corresponding period.
The oil and gas explorer attributed the movement to a number of items including lower oil sales revenue, derived from lower volumes and price, higher costs of sales and a $2.8 million write off of unsuccessful wells in the Cooper Basin.
An $18.5 million expense associated with a transition agreement and commencement of production with APA (APA) was also included with the loss, to provide the framework for commencing Sole gas sales agreements.
The supply of Sole gas to Cooper Energy’s utility and industrial customers commenced on December 1, 2020 and January 1 this year, and the company hopes to deliver a step-change in production, revenue and cash flow.
Underlying earnings before interest, tax, depreciation, amortisation, restoration, exploration and evaluation expense and impairment was down 40 per cent to $9.7 million on the prior corresponding period.
In some respite for the company, gas production from the aforementioned Sole field increased 82 per cent to 1.20 million barrels of oil equivalent.
At 31 December 2020, the COE had cash, deposits, and equity instruments of $116.3 million and drawn debt of $229.4 million.
Cooper Energy Managing Director David Maxwell said it had been a challenging but encouraging start to 2021.
“Signing the Transition Agreement with APA and subsequent reconfiguration of the Orbost Gas Processing Plant were critical milestones during the first half of FY21,” he explained.
“This enabled us to commence supply under our Sole gas sales agreements, providing a material uplift in sales volumes, realised pricing and cash flow,” he added.
Cooper Energy shares closed the session off 1.61 per cent, trading at 30.5 cents each.